European Journal of Social Sciences Studies
ISSN: 2501-8590
ISSN-L: 2501-8590
Available on-line at: www.oapub.org/soc
10.5281/zenodo.210901
Volume 1│Issue 2│2016
LOCATION OF ECONOMIC MAN IN MORAL ECONOMY
Kübra Karayılani, Ömer Yılmaz
Gaziantep University, Nizip Vocational School, Turkey
Abstract:
As developments in modern economic sciences have increased rapidly in recent
centuries, the moral position within economics has begun to shrink gradually. Living
developments have prevented acting with emotions, such as moral and social benefits
or social responsibility. Increasing depreciation of the concept of morality in the
economy is felt more often in some economic systems and it is observed that the social
values or value judgments have been damaged by putting the interests of the
individuals in the forefront. However, it is pointed out that morality is important within
the economy, along with the globalization, economic growth or development, it is seen
that ethical values and economic values do not support each other in practice while
advocating that all economic activities carried out should be done with business
morality.
Keywords: morality, economic man, capitalism, socialism, Islam
1. Introductıon
Along with globalization, economic relations have developed and increased.
Development of economic relations both at the local and global scale has made the level
of wealth of individuals increase and individuals increasing their welfare level have
increased their commercial trends accordingly. As a result, while individuals aim to
maximize their own interests, they have used the opportunities provided by the
economic system that they are in. While existing economic systems motivate people to
consume more and earn more, it was imposed that if the person which constitute
society, meets his/her own interests, social interests will be met. However, in order for
Copyright © The Author(s). All Rights Reserved
Published by Open Access Publishing Group ©2015.
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these systems to operate properly, attention should be paid to the concept of morality
and due importance should be given.
In this work, the model of the economic man, 'Homo economicus' which is
trying to maximize its own interest the capitalist system, will be handled in the frame of
morality and will be referred to the moral in economic systems. In addition, the place of
the concept of morality in the Islamic economy and in the western economy will be
compared.
2.
Moralıty and Economy
Before evaluating ethics in the economy, it will be appropriate to refer to the concept of
morality. According to the definition of thinkers like Charles Powers and David Vogel,
Morality in essence; Is a process that explores what constitutes human well-being and explains
the types of behaviors and decisions necessary to promote them. (Özgener, 2000). The fact that
the concept of ethics and economy cannot be considered independently of one another
arises if many economic problems are thought to arise because morals are not
sufficiently absorbed and neglected in the markets. Ethical values should not be
neglected while economic targets are being carried out because an economy not based
on moral values cannot hold, in short, if economic values are not supported by moral
values they cannot be afloated. (Özgener, 2000). Recent changes have weakened the
prevalence of morality within economic systems. However, it will be possible for the
economics to transform into a more fundamental and encompassing consciousness by
positioning itself in the moral and social sciences.
Adam Smith, the founder of modern economics, published a work called The
Theory of Moral Sentiments before publishing his work entitled 'The Wealth of Nations',
pointing out the human model of 'empathy' in this work and pointed out that this
behavior will shape the emotions. But Smith, who formed the foundations of Modern
Economics, then pointed out the concept of 'homo economicus', taking precedence over
his own interests which are the 'economic man'.
By combining these moral characteristics with the economic people, he has come
to the conclusion that they will increase the social welfare by making more healthy
decisions in the market and (Bulut, 2015). Ethics in the economy must be built on
personal freedom, freedom of the market and responsibility and respect for interest
groups (Özgener, 2000).
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3.
Economıc Systems and Moralıty
3.1.
Capitalist Economy and Morality
In the capitalist system, people are based on individuals who are self-interested and
trying to make rational decisions by selfish behavior. This type of person is the 'homoeconomicus' human model. In this model, it was conceived that a person would pursue
personal benefit while pursuing personal interests. This understanding has led people
to new economic behaviors such as money ambition and consumption curiosity. If
moral values are not take into account in a manner where such behavior is
acknowledged and rewarded, this environment will bring with it social, political and
economic crises 5zsağır,
. This is the situation in the modern economy, and it is
pointed out that in the Ahi troops, which persisted up to the 19th century, and were
placed on moral grounds while performing their occupation, the individuals who
cannot decide on any job, changing jobs and in the money ambition have become an
ungodly spirit and therefore cannot become Ahi people (Öztürk, 2002). In addition,
when looking at the situation in terms of abrahamic religions, it shouldn't be for a
person's aim in the life to achieve maximum pleasure. This is regarded as greed because
the love of money and the desire for material pleasure that fuel economic gains are all
due to wanting to have. At this point, the human model of homo-economicus is in
conflict with the abrahamic religions, because the abrahamic religions grasp the
loathing (Madi, 2015). Moreover, even if the homo economic model accepts a certain
amount of money, it will not be accepted in terms of İslamic economics as it always
prefer more to less (Madi, 2015).
Since human being is at the base of economic science, it makes it possible to
make choices by freeing people while making economic decisions. At this point the free
individual will have to make a choice 5zsağır,
. Ethics in the capitalist system is
regarded as a personal problem and the highest virtue in capitalist ideology is
considered 'freedom'. Through this free thought, common favor will consist itself. This
optimistic view of capitalism, which defended the idea that every human being would
gain social favor while pursuing his own interests, has lost its importance over time
Işıktaç,
. In systems where the mentality prevails that the universe existed itself,
there is a sense of freedom for the enjoyment of their own tastes (Madi, 2015). These
human types have certain characteristics as a result of self-deciding to be a moral
person or a homo economic person. Human beings have characteristics consisting of
both individuals in the sense of creation. By using these features together, a more fair
market structure will emerge 5zsağır,
.
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Table 1: Characteristics of Human Beings
Positive Charasteristics (Moral Human Being)
Rational
Negative Caharacteristics (Homo-economicus)
Alturist
Satiated
Appreciating
Patient
Shrinks Away from Property
Sharing
Modest
Irrational
Selfish
Greedy
Thankless
Impatient
Fond of Property
Stingy
Arrogant
Source: 5zsağır,
As you see in Table 1, homo economicus does not appear to be morally adorable as it
only operates with material interest in human economic activities. In such personal
behavior, the concepts of moral and social dimension are excluded. However, the
behaviors exhibited in society cannot be abstracted from moral and social values. The
individual deprived of morality will not contribute to social benefit and will harm the
soul 5zsağır,
. The individual who moves only with personal interests will distort
the functioning of the economic system over time. The individual who operates with
business moral will show rational behavior through his auto-control and reach the
truths accepted by the society through the inner voice called conscience. Business ethics
is defined as the ideal attitude, behavior, and way of thinking that penalize by repelling,
condemning, and abandoning loneliness when he behaves contrary to the profession,
adopted by all, and generally accepted (Öztürk, 2002). Every individual who takes this
attitude will take care of his own interests and will not count on the public interest
while carrying out economic activities.
In the capitalist economy, in fact, each individual demonstrates his willingness to
work for his own benefit, and his desire to earn more money, also serves for the sake of
society without the individual being aware of it. Because it helps to raise the welfare of
other individuals with the help of the 'invisible hand'. At this point, there are also
opinions that show that the direction promoting the selfishness in the economy is moral
rather than immoral (Aktan, 2015). But unlike those who explain it as being moral, there
are too many critics about this direction of the Neo-Classical Economy. It has been
criticized seriously for the 'economic man' to be thought of as a selfish, onedimensional, self-conscious mechanical individual Kurtulmuş,
.
'Homo economicus' human species have been emphasized due to being
inherently unlimited in its needs in nature. Needs within this world are unlimited but
resources are limited. If the moral dimension of the so-called Human being was not
neglected, it could be noticed that the desires were intermixed because the desires of the
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human being are unlimited. This reveals the lack of this assumed human type in the
capitalist economy (Bulut, 2015).
3.2.
Morality in the Socialist System
Socialism has emerged as a remedy for problems such as rising unemployment and
inequality, untapped labor, and has created a new type of people to solve these
problems. This type of person is defined as 'social individual'. But socialism has failed
to create this human type because the individual is not willing to work for a long time
to increase social welfare and for these ideals (Özgener, 2000). The individual who is
put forward by the capitalist system understands the struggle to maximize his own
interests and considers everything as permissible, while the individual put forward by
socialist system has been possessed by oppressed class.
The 'Homo economicus' human model, which confronts in the capitalist system,
means 'egoist and hedonist' individual according to moral philosophy as it is an
individual who struggles to maximize utility Akyıldız,
8 . At this point, the 'social
individual' in the socialist system seems more charming. Because main cause of this
reasoning is 'profit' order which is expressed as the greatest injustice of the capitalism.
But the profits that generate in capitalism or enter into the pocket of the owner of the
capital are not reflected in the laborers in socialism. On the contrary, profits in socialism
are shared by the bureaucratic upper echelons that are ossified in political and
administrative positions (Özgener, 2000).
3.3.
Financial Morality in Islam
In the analysis of capitalism in Islamic literature, it is suggested that this human type,
which is formed by the "homo economicus" in the minds of the people and constantly
imposing personal interests, acting with the maxim of profit, created the bourgeoisie
and capitalism. In the Islamic model, this type of human is replaced by the other altruist
type of human being, and it is claimed that the injustices that capitalism has caused by
this type of human being and understanding are not included in this system. The
individual in this human type; Possesses a contemplative spirit that holds social benefit
above its own merits Islam describes this type of human being as a Muslim who acts in
a rational manner, puts his trust in Allah, an economic subject in conscious of rightful
share. The Islamic approach reflects the projections of the economic area as a result of
the moral values of man. These characteristics and the human type mentioned are the
ideal qualities and the ideal human being (Ongan, 2008).
The capitalist system has created an egoistic type of person who does not know
how to share, contributes outside the collective wills, and thinks only of his own
interests. In other words, this type of human being created by capitalism moves not
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with good, but with evil instincts. The Islamic economy deals not only with the question
of "how" but also with the question of "why" and searches answers for them. The
economics profession also reveals the reasoning power trying to answer this question.
But the traditional economy does not ask why and it does not answer the question.
Because 'Why' creates the moral direction of the event. Compliance with ethical
principles is an indispensable rule in the Islamic economy (Güngör, 2015).
According to Islam, the interests of individuals and society are separate and
independent. The interests of individuals and society must be in harmony. The
individual acting according to this rhetoric prefers the interest of the society to the
individual's interest. He sees the public's interest above his own interests. The mundane
wishes of economic actors playing a role in economic life cannot be separated from
religious life. According to Islam, all the individuals who constitute the society are held
responsible for the well-being of others. Islam invites all individuals into behaviors such
as conscientiousness, honesty, integrity, righteousness, regardless of status, within the
economy and society. Every sector has a social, moral and ethical responsibility (Azid et
all., 2008). The main purpose in the human model of Islamic economics is to win the
pleasure of God. Moral man is not selfish but empathic 5zsağır,
. Zaim,
expressing that the human model in Islam should not behave like homo economicus,
characterizes Islam as "homo Islamicus" and gives Islam a new definition. The efforts to
meet this person's needs and maximize his interests have re-arranged reasonably within
the framework of the orders and prohibitions of Allah and can only do so by possessing
and implementing Islamic knowledge (Eren, 2013).
Table 2: The Difference between Human Model in Islam and Homo-Economicus Human Model
Homo Economicus
World-Hereafter Opinion
Material -Meaning
Human Model in Islam
Busy with world, doesn t care
Has a strong hereafter faith and
hereafter
acts accordingly.
Material is in the forefront
Both materials and spirituality is
important.
Moral values
Selfishness/
Moral and spiritual values are
Moral and spirituality values are
not paid attention.
important.
Selfish
Altruist, empathic.
Thinks welfare for own
Consider the welfare of the
Altruist
Interest Opinion
whole society
Society Perspective
Does not evaluate the collecting
Considers the affects of his/her
/ Social Responsibility
effect of decisions
decisions and acts accordingly.
Expense
Endless expense and
Spends but does not waste.
consumption
Stinginess /
Stimulates stinginess
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Generosity is a sine qua non.
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Generosity
There is a tendency to consume
Prefers to consume as much as
limitless
s/he needs.
Determines the production area
He carries out production
according to its own decision.
appropriate for religion.
Attitude Towards the
Does not concern the
Tries to product and consume
Environment
environmental effects of the
considering the environment
Consumption
Production
decisions taken regarding
production and consumption.
Confidence
It does not rely on trust in its
Gives importance to faith
transactions,
Rationality
Only by adding accounts to this
In addition to this world,
world, has a rational rationality
considers other people, has
that does not take into account
rationality
the effects of its activities on the
outside world,
Source: Eren, 2013
After stating characteristics of Islamic and economic man and how they act, these two
types were compared and homo-economicus type was criticized at Table 2. While the
capitalist system, the traditional economy, puts forward the type of economic man, the
Islamic economy defines the ideal human type, who is moral.
4.
Conclusıon
Homo-economicus human model is expressed as a hedonist and selfish individual
pursuing interest according to moral philosophy. When evaluated in terms of social
benefit, this individual has no meaning at all. This human type, which was revealed by
the traditional economy, is defined as a being deprived of egoistic, value judgment and
soulless. Human beings do not fit into a single dimension and mold. It has many
features in terms of its characteristics and also contains the contrasts. So the
characteristics of a person cannot be reduced to a uniform behavior. The capitalist
economy overlooked the factors that influence human behavior that can be effective in
the decision-making process of a person. This type of human being revealed by the
neoclassicists is insufficient to explain the economic behavior of people. Because there
are many factors and priorities that affect the decisions of individuals.
According to socialist economists, this type of human being defined in the
capitalist economy has been criticized, while the expression of 'social individual' has
been put forward and this type of human being is easily adopted by the oppressed
class. Because the type of human being foreseen by the capitalist system has led to the
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formation of the bourgeois sect and it has polarized society. At this point of concepts
such as socialist system predicted, such as social state, social individual, equality and
justice attracted people. However, when you come to the application side, equality has
not brought justice; this system has become a system that the upper bureaucratic sector
has worked into. The socialist system is distributed among the upper bureaucratic
people to the profit mechanism which is opposed to capitalism, causes the people to
become egoistic at this point, and led space that is more unjustified and a system that
encourages people to become lazy. Economic systems have tended to human
characteristics and formed a different human type model at making economic behavior
of people come true.
Nevertheless, in the West, at Islamic world, studies have been done on at what
point to consider economic activities and there is a tendency to determine the economic
behavior of people. At this point, they criticized the type of human being created by the
Capitalist economy and introduced a new model of human type. These definitions are
expressed as moral human, altruist and empathic. Bazı yazarlar ise bu insan tipini
Homo-Islamicus olarak tanımlamaktadırlar. When we look at the moral dimension of
moral and economic behaviors within Islam, we form a Muslim type of person 'Homoislamicus' against Homo-economics, who holds social benefit superior to his own
benefit, has responsibilities, empathizes, believes that he should not be defeated, and
believes that he will win the hereafter. This human type emerges as a human model that
constitutes the ideal. They have interpreted the rhetoric of 'demanding more' and
'consuming more' discourses as opposed to this understanding of the capitalist
economy. The definition of ethical human being in the Islamic economy, put forward
the ability to be virtuous, and the passion to earn money and the curiosity of
consumption have been criticized and considered inadequate in economic man.
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